Rule on Inducements - COBS Provision: Difference between revisions
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In a nutshell: | In a nutshell: | ||
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{{fcaprov|2.3.1}} A {{fcaprov|firm}} must not | {{fcaprov|2.3.1}} A {{fcaprov|firm}} must not give or receive any fee, commission or non-monetary benefit ('''benefit''') in relation to business carried on for a {{fcaprov|client}} other than: | ||
:(1) '''Client | :(1) '''Client Benefits''': a benefit paid to or by the client; or | ||
:(2) '''Third Party | :(2) '''Third Party Benefits''': a benefit paid or provided to or by a third party if: | ||
::(a) '''No impairment''': it does not impair the firm's duty to act in the client’s best interests; and | ::(a) '''No impairment''': it does not impair the firm's duty to act in the client’s best interests; and | ||
::(b) '''Full disclosure''': it is clearly and comprehensively disclosed to the client before providing the service; and | ::(b) '''Full disclosure''': it is clearly and comprehensively disclosed to the client before providing the service; and | ||
::(c) '''Service enhancement''': the | ::(c) '''Service enhancement''': the benefit is designed to enhance the quality of the service to the client; or | ||
:(3) '''Ancillary | :(3) '''Ancillary Benefits''': benefits which enable designated investment business or ancillary services, such as custody costs, exchange fees, regulatory levies or legal fees, and which cannot give rise to conflicts with a clients’ best interests. | ||
}} | }} | ||